Comments on: How a Flexible Spending Account (FSA) Will Save You Money http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/ Thu, 06 May 2010 19:28:41 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Dave http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-80083 Dave Mon, 05 Apr 2010 18:49:42 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-80083 Simon: Can you explain to me how you're paying tax on the money forfeited for FSA Dependent care? On Form 2441 Line 16 for 2009, you subtract the amount you forfeited. So, e.g, if you put in $5000 for FSA Dependent care, and you have receipts for $4300, but you hand in on time only $4000 of receipts, I would think that you have forfeited 5000-4000=1000 (line 16 of 2441 Part III). Hence line 17 is 5000-1000=$4000, so I don't see how you'll be taxed on the $1000 that you lost. Although I read on wikipedia under FSA that if you set aside $5000 & have a non-working spouse and also fail to hand in receipts on time, you not only forfeit the $5000, but pay tax on it as well. This seems to contradict the form, but support your claim that you forfeit the money & also are taxed on what you forfeited. If you or someone else can assist me on this, I would appreciate it. Thanks. Simon:
Can you explain to me how you’re paying tax on the money forfeited for FSA Dependent care? On Form 2441 Line 16 for 2009, you subtract the amount you forfeited. So, e.g, if you put in $5000 for FSA Dependent care, and you have receipts for $4300, but you hand in on time only $4000 of receipts, I would think that you have forfeited 5000-4000=1000 (line 16 of 2441 Part III). Hence line 17 is 5000-1000=$4000, so I don’t see how you’ll be taxed on the $1000 that you lost.
Although I read on wikipedia under FSA that if you set aside $5000 & have a non-working spouse and also fail to hand in receipts on time, you not only forfeit the $5000, but pay tax on it as well. This seems to contradict the form, but support your claim that you forfeit the money & also are taxed on what you forfeited.
If you or someone else can assist me on this, I would appreciate it.
Thanks.

]]> By: S.N. http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-79879 S.N. Sat, 29 Aug 2009 14:16:24 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-79879 Yes, it is a scam. Company started taking money into FSA before they enabled my account for FSA (1 month benefit delay), then I left job and the last paycheck long after I'm not with the company still withdraws a chunk of money, but I can't submit any claims for the next month because I only had FSA for the previous month. So, CBIZ FSA will get $200 bonus (could be worse). And nobody wanted to do anything to help. S-C-A-M!!! I say, if they scam us, we need to scam them, period. Yes, it is a scam. Company started taking money into FSA before they enabled my account for FSA (1 month benefit delay), then I left job and the last paycheck long after I’m not with the company still withdraws a chunk of money, but I can’t submit any claims for the next month because I only had FSA for the previous month. So, CBIZ FSA will get $200 bonus (could be worse). And nobody wanted to do anything to help. S-C-A-M!!! I say, if they scam us, we need to scam them, period.

]]> By: Jason Guthrie http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-79777 Jason Guthrie Sat, 04 Apr 2009 19:48:12 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-79777 Simon, it is truly unfortunate what happened to you. However, I do have practical experience with a FSA - in fact I've been using it with no issues whatsoever for the past two years. Granted, it takes a few minutes to fill out the forms, but the 5 minutes of pen work is well worth it. Fortunately people can learn from your unfortunate experiences. Simon, it is truly unfortunate what happened to you. However, I do have practical experience with a FSA – in fact I’ve been using it with no issues whatsoever for the past two years. Granted, it takes a few minutes to fill out the forms, but the 5 minutes of pen work is well worth it. Fortunately people can learn from your unfortunate experiences.

]]> By: Simon Bancroft http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-79766 Simon Bancroft Mon, 30 Mar 2009 19:37:43 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-79766 Jason clearly is writing theoretically and has no pratical experience of an FSA. The reality is that they are awful things, benefiting only the company when funds are forfeited and the IRS when you pay taxes on money that you forfeited! Companies WILL DO ANYTHING to ensure funds are forfeited. In my case I dutifully collected receipts and then had the entire lot rejected because I did not have the SSNs for those who wrote the reciepts. By the time I was told why none of my reciepts were being honored, it was too late to get SSN's, even if I had somehow been able to persuade people to give me their SSN's. This was a very stressful experience and ended up being a major factor in why I quit the company. Jason clearly is writing theoretically and has no pratical experience of an FSA. The reality is that they are awful things, benefiting only the company when funds are forfeited and the IRS when you pay taxes on money that you forfeited!

Companies WILL DO ANYTHING to ensure funds are forfeited. In my case I dutifully collected receipts and then had the entire lot rejected because I did not have the SSNs for those who wrote the reciepts. By the time I was told why none of my reciepts were being honored, it was too late to get SSN’s, even if I had somehow been able to persuade people to give me their SSN’s. This was a very stressful experience and ended up being a major factor in why I quit the company.

]]> By: R.C http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-76706 R.C Sun, 02 Nov 2008 02:49:42 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-76706 Another BIG disadvantage to FSA'a is that if you lose your job, you immediately lose all the money that you contributed to your FSA even if you have other expenses beyond that, you can not access that money. Get rid of FSA and go to HSA instead. HSA will roll-over year to year and can be moved without as many problems. Another BIG disadvantage to FSA’a is that if you lose your job, you immediately lose all the money that you contributed to your FSA even if you have other expenses beyond that, you can not access that money. Get rid of FSA and go to HSA instead. HSA will roll-over year to year and can be moved without as many problems.

]]> By: F.G. http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-76184 F.G. Tue, 21 Oct 2008 23:41:38 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-76184 The big problem with F.S.A. is that the money set aside needs to be used in the calendar year or you lose it. That is the biggest government scam. How are you supposed to forecast when you get sick and when you are going to need the money...?? Isn't it ludicrous that our legislators set up such a scam ? For the FSA to make any sense, money set aside for medical expenses should sit in the account till is needed not just stolen if not used. Typical IRS scam... The big problem with F.S.A. is that the money set aside needs to be used in the calendar year or you lose it.
That is the biggest government scam.
How are you supposed to forecast when you get sick and when you are going to need the money…??
Isn’t it ludicrous that our legislators set up such a scam ?
For the FSA to make any sense, money set aside for medical expenses should sit in the account till is needed not just stolen if not used.
Typical IRS scam…

]]> By: F.G. http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/comment-page-1/#comment-76183 F.G. Tue, 21 Oct 2008 23:39:27 +0000 http://beancounterblog.com/2007/12/05/how-a-flexible-spending-account-fsa-will-save-you-money/#comment-76183 The big problem with F.S.A. is that the money set aside needs to be used in the calendar year or you lose it. That is the biggest government scam. How are you supposed to forecast when you get sick and when you are going to need the money...?? Isn't it ludicrous that our legislators set up such a scam ? Fot the FSA to make any sense, money set aside for medical expenses should sit in the account till is needed not just stolen if not used. Typical IRS scam... The big problem with F.S.A. is that the money set aside needs to be used in the calendar year or you lose it.
That is the biggest government scam.
How are you supposed to forecast when you get sick and when you are going to need the money…??
Isn’t it ludicrous that our legislators set up such a scam ?
Fot the FSA to make any sense, money set aside for medical expenses should sit in the account till is needed not just stolen if not used.
Typical IRS scam…

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